A double-dip recession in the housing market?

Things keep getting worse in the housing market as foreclosures glut the market and depress prices. It’s so bad that some are calling it a double-dip recession in the housing market.

If the numbers showing housing prices slumming it around their spring 2009 lows aren’t troubling enough, then the surrounding context certainly is. The federal government spent trillions of dollars lifting housing — the recession’s great instigator — out of its trough. And now that home prices have collapsed again, the feds have far fewer tools available to prop them up again.

This does not bode well for the entire economy, but it just shows how long it’s going to take to work through all the excesses of the mortgage bubble. In Las Vegas, the foreclosures are now spreading to upscale homes as well, giving high rollers the opportunity to come in and scoop up real estate gems on the cheap.

Fortunately, there is one silver lining, as young people now actually have hope of getting an affordable home if they have decent income. With all the bad news out there for young people in the job market, at least there’s some good news. Unfortunately, many people are paying the price for the excesses of the past decade.


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